Common use of Average Bonus Clause in Contracts

Average Bonus. “Average Bonus” shall mean the average of the annual bonuses received by the Executive for the three most recently completed fiscal years prior to the Termination Date, provided that for purposes of this calculation (a) each such annual bonus amount shall include amounts paid in cash or in restricted stock units if applicable in accordance with the terms of the AIP, and (b) if the Executive receives an LTIP award in lieu of an annual bonus for a given fiscal year pursuant to the terms of the AIP requiring the payment of only the “greater” of the two awards, the Executive’s “annual bonus” for such fiscal year shall be the calculated annual bonus the Executive would have received for such fiscal year based on performance absent such provision.